Corporación América Airports: Traffic Growth To Power Next Leg Higher (NYSE:CAAP)

Corporación América Airports S.A. (NYSE:CAAP) is one of the world’s leading private airport concession holders. It operates 52 airports spanning South America, Europe, and Eurasia.

The company got its start in 1998 when it won the AA2000 concession in Argentina, which gave it the right to manage most of Argentina’s leading airports. It controls these airports, including both major Buenos Aires ones, through 2038. It has also since added airport operations in Brazil, Italy, Armenia, Ecuador, and Uruguay. It’s also seeking potential expansion opportunities in additional markets, such as Nigeria and Angola.

I have been a proponent of CAAP stock dating back to 2020 when I highlighted that its liquidity position was better than the market was giving it credit for, thus making it likely to survive the global travel shutdown. CAAP stock has since rallied from $2/share at that point to almost $20 per share today.

Even after the huge move, however, I remain convinced that the stock remains substantially undervalued. Here’s why I see CAAP stock as a strong buy today.

Strong Traffic Growth And Increased Profitability

I recently highlighted how Mexico’s Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) has seen its traffic inflect sharply higher over the past quarter. As recently as November 2024, OMAB had been comping negative traffic year-over-year, but that has now surged to 9.9%-plus as of January 2025. It was understandable to think that this dynamic was somewhat unique to the Mexican market as Mexico’s leading carrier, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS), was hit especially hard by the Pratt & Whitney engine defects.

However, CAAP is now reporting a similarly vigorous turn in its traffic data. Here’s a table showing the company’s air traffic by country in January 2025 as compared to January 2024:

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